03:43 PM EDT, 08/15/2024 (MT Newswires) -- New York manufacturing activity contacted less than projected in August, while the US Mid-Atlantic region posted a surprise negative reading amid declines in new orders and shipments, two separate reports showed Thursday.

The Federal Reserve Bank of New York said the Empire State Manufacturing Survey's general business conditions index improved to minus 4.7 this month from minus 6.6 in July. The consensus was for minus 6 print in a survey compiled by Bloomberg.

New orders slumped to minus 7.9 from minus 0.6, while shipments dropped to 0.3 from 3.9. The index for the number of employees improved to minus 6.7 from minus 7.9, the Fed branch said.

"Labor market conditions remained weak, with a small decline in employment and a sharp drop in hours worked," New York Fed Economic Research Adviser Richard Deitz said. "Firms continued to be somewhat optimistic that conditions would improve in the months ahead."

Six months out, the index for general business conditions dropped 2.9 points to 22.9 this month. The future new orders index rose 4 points to 24.8, while the shipments gauge dropped 3.2 points to 22.1, according to the New York Fed. The outlook for employment growth picked up.

Separately, the Philadelphia Fed said the Manufacturing Business Outlook Survey's headline gauge for business activity in the Mid-Atlantic region swung to negative 7 in August from 13.9 last month, marking its first negative reading since January. A survey compiled by Bloomberg indicated a positive 5.2 print.

The index charting new orders fell to 14.6 from 20.7, while shipments sank to 8.5 from 27.8. The employment index plunged to minus 5.7 from 15.2.

Almost 18% of the firms saw increases in general activity in August, down from 39% last month, while 25% reported declines, unchanged from July. Some 53% reported no change in activity, up from 29%, the data showed.

Six months out, expectations for general activity slumped to 15.4 in August from 38.7 last month. The future new orders component tumbled to 10.4 from 31.3, while shipments decreased to 9.8 from 31.

The Philly Fed said 37% of firms expect increases in activity, while 21% project decreases. Roughly 37% of firms expect no change, according to the report.